Newcastle residents who are taking Ultimate Leisure to court over plans to open a new pub have admitted they are being funded by the area's biggest venue.
The objectors admitted to the local newspaper, The Journal, that their legal bills were being met by the Rindberg Holding Company, owners of Osbornes bar.
Residents living close to the Gresham Hotel, which Ultimate wants to turn into a pub, won leave to seek a judicial review of the magistrates' handling of Ultimate’s licence application at the High Court on Monday.
Gerald Gouriet, representing the residents, alleged that Ultimate had bought a bar in Newcastle city centre with the intention of transferring its alcohol licence to the Gresham when it came under a compulsory purchase order.
Ultimate denied that it only bought the bar for the licence, pointing out that it invested £150,000 in refurbishing the bar and operated it for 18 months.
Bob Senior, the managing director of Ultimate Leisure, said the resident’s argument that there were too many bars in the Jesmond area of the city had lost credibility.
Senior said: "The complaints about Osborne Road are being generated by the bars that are already there and the biggest of those is Osbornes. The residents have lost credibility because their case has been hijacked by the people who own Osbornes."
Dave Cross, the chairman of the Jesmond Network, an umbrella group for local residents, defended the arrangement, saying: "Ordinary residents of Jesmond are terrified of having massive costs awarded against them.
"I understand why you might think it's unusual, but we wouldn't be able to do this without the protection from the company."
Rindberg was unavailable for comment.
The objectors admitted to the local newspaper, The Journal, that their legal bills were being met by the Rindberg Holding Company, owners of Osbornes bar.
Residents living close to the Gresham Hotel, which Ultimate wants to turn into a pub, won leave to seek a judicial review of the magistrates' handling of Ultimate’s licence application at the High Court on Monday.
Gerald Gouriet, representing the residents, alleged that Ultimate had bought a bar in Newcastle city centre with the intention of transferring its alcohol licence to the Gresham when it came under a compulsory purchase order.
Ultimate denied that it only bought the bar for the licence, pointing out that it invested £150,000 in refurbishing the bar and operated it for 18 months.
Bob Senior, the managing director of Ultimate Leisure, said the resident’s argument that there were too many bars in the Jesmond area of the city had lost credibility.
Senior said: "The complaints about Osborne Road are being generated by the bars that are already there and the biggest of those is Osbornes. The residents have lost credibility because their case has been hijacked by the people who own Osbornes."
Dave Cross, the chairman of the Jesmond Network, an umbrella group for local residents, defended the arrangement, saying: "Ordinary residents of Jesmond are terrified of having massive costs awarded against them.
"I understand why you might think it's unusual, but we wouldn't be able to do this without the protection from the company."
Rindberg was unavailable for comment.
